PMT function
I can't ever seem to get the payment function to calculate properly. I am
entering an $80,000 loan with and interest rate of 8% payable over 5 years. This is the formula I am entering =PMT(0.6667,60,80000). The result I am getting is ($53,336.00). The answer should be a montly payment of $1,622. My eyes are crossed - what am I doing wrong? |
PMT function
You should use
=PMT(0.006667,60,80000) the first parameter is rate/period so in this case it should be 0.08/12 or 8%/12 "Brent" wrote: I can't ever seem to get the payment function to calculate properly. I am entering an $80,000 loan with and interest rate of 8% payable over 5 years. This is the formula I am entering =PMT(0.6667,60,80000). The result I am getting is ($53,336.00). The answer should be a montly payment of $1,622. My eyes are crossed - what am I doing wrong? |
PMT function
On Feb 10, 8:58*pm, Brent wrote:
I can't ever seem to get the payment function to calculate properly. I am entering an $80,000 loan with and interest rate of 8% payable over 5 years. This is the formula I am entering =PMT(0.6667,60,80000). The result I am getting is ($53,336.00). The answer should be a montly payment of $1,622. My eyes are crossed - what am I doing wrong? Two things. First, let Excel do the math for you. Instead of 0.6667, which is wrong, or even 0.006667, use 8%/12. Second, if you want a positive result, there are two ways. =-pmt(8%/12,60,80000) =pmt(8%/12,60,-80000) Finally, if your monthly payment is truly rounded to an even dollar amount, you should do that explicitly: =round(pmt(8%/12,60,-80000),0) If you simply format the cell with zero decimal places, that will not affect the actual value on the cell, approximately $1,622.11. |
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